The following are the latest technical setups and trades for EUR/USD and GBP/USD as provided by the technical strategy team at Credit Suisse.
EUR/USD: The immediate risk stays lower while capped below 1.1423/60.
With the market still capped below price, downtrend and falling 13-day average resistance at 1.1423/60, the immediate risk remains lower. Support shows at 1.1262/59 at first, followed by 1.1224/21. A break below the cycle low at 1.1098 is needed to confirm the resumption of the core bear trend, with our medium-term target placed at 1.0836/0765 – price and 50% retracement of the 1985/2008 bull trend.
Resistance remains at 1.1368, followed by 1.1423. Above can see more important resistance from price, downtrend and falling 13-day average at 1.1447/60 which we look to cap any near-term strength
CS maintains a short EUR/USD position from 1.1357 targeting 1.0840.
GBP/USD: The immediate risk remains lower for the recent low at 1.4951, below which can see scope for 1.4913.
GBPUSD has declined after finding a cap near key price resistance at 1.5268/70. Support shows first at 1.5018, with a break below the cycle low at 1.4951 needed to resume the core downtrend. This should then see a challenge of 1.4913 initially, ahead of tougher support from the 2013 lows just below at 1.4832/13, where we would expect a basing effort.
Near-term resistance moves to 1.5164, followed by 1.5221/24. A break above 1.5268/70 is needed to suggest a deeper recovery for 1.5318/22, ahead of 1.5400/03.
CS is short GBP/USD with a stop at 1.5276, and a target at 1.4915.
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